Showing posts with label free trade. Show all posts
Showing posts with label free trade. Show all posts

Wednesday, January 19, 2011

U.S. taking Canada to arbitration over softwood

It seems the efforts to use the beetle-killed wood before it rots are displeasing to the Americans:

The beetle infestation that has ravaged the dense forests of the B.C. Interior could wind up costing Canada a good deal more – up to a half-billion dollars in penalties to the United States.

The Obama administration opened an aggressive new legal front in the enduring trade fight over lucrative softwood lumber exports, accusing Canada of violating a 2006 deal by allowing British Columbia to sell vast quantities of cut-rate, Crown-owned timber to lumber companies.

From the Globe. And what is the nature of this "subsidy"?
The heart of the U.S. case is that B.C. lumber producers have blatantly exploited the beetle infestation and a flawed timber pricing system to get their hands on vast quantities of good, cheap logs during the worst industry slump since the Great Depression. Lumber that typically would be sold to mills for as much as $18 per cubic metre was instead dumped for only 25 cents per cubic metre. The result lowered lumber prices across North America and inflicted pain for U.S. mills, according to the U.S. claim.
Right. So presumably we're supposed to let the stuff rot (and incidentally dump vast amounts of CO2 into the atmosphere), so that it will be cost-effective for the Yanks to cut down live trees. Does this make any sense?

Friday, January 7, 2011

Apparently Columbia is now a safe country

At least that's what the Harper government seems to think, hence the dramatic increase in the number of refugee claims from that country that are being rejected:

Colombia remains on Canada’s list of top 10 source countries for refugees. For the last 10 years, the acceptance rates for Colombian refugee claimants has hovered between 75 and 83%.

In 2010, the rate dropped to 53%, meaning almost half the claimants were denied. Also last year, a free trade agreement between Colombia and Canada came into effect, putting Ottawa under the microscope of advocacy groups including Human Rights Watch.

From the London Free Press, my bold. Gee, do you think this agreement might have something to do with it?

Thursday, January 6, 2011

Food prices continue to rise

It's happening around the world, and there's no sign of an end to it any time soon:

Food prices have soared to record levels around the world, raising fears that poor countries could face a crisis similar to the one that led to rioting and rationing two years ago.

“We are entering a danger territory,” Abdolreza Abbassian, an economist at the United Nations’ Food and Agricultural Organization (FAO) told reporters Wednesday.

From the Globe. And what are the main reasons for this?
Prices for many agricultural commodities started rising last fall largely because of poor grain crops in Canada, Russia and Ukraine. They have spiked even higher recently because of dry weather in Argentina, a major soybean producer, and flooding in parts of Australia, which has wiped out many wheat crops. The price of wheat has jumped about 17 per cent in the last month while corn is up 11 per cent. Both are now close to two-year highs. Other food staples have been soaring as well, including canola, up 43 per cent last year, and sugar, which hit 30-year highs.
Now it's premature to say that this is clearly because of climate change; it's always a bit dodgy to attribute any particular weather event to climate change (or, for that matter, to claim it as a counterexample). However, I think it's safe to say that this sort of thing will become more common as the climate suffers further disruption.

Naturally, when countries suffer from poor crops, some of them will impose restrictions on the export of said crops. Governments generally want to ensure that their own people are fed first, after all. Well, some don't think this should be allowed:

The environment minister, Caroline Spelman, today risked incurring the wrath of many major food-growing countries by saying it should be illegal to halt food exports even at times of national crisis.

In a clear reference to Russia and the Ukraine, which temporarily halted exports of wheat and other grains in order to protect supplies for their own people during an unprecedented heatwave last year, she said no country should be allowed to interfere with the global food commodity market.

From the Guardian. Of course, Spelman presumably doesn't think that commodity speculators should be restricted from such interference; that's part of business after all. It's only when sovereign nations do so for the benefit of their own people that it becomes unacceptable.

Incidentally, thanks to NAFTA, Canada faces a similar restriction with regards to energy. If we face a shortage in the future (say a reduction in the flows of the Saskatchewan and Churchill rivers as a result of melting glaciers) and need to reduce our energy exports, any reduction in exports must be proportionate to a reduction in domestic consumption -- even if it means brownouts here. This makes no sense with energy, and it makes no sense with food either.

Friday, May 7, 2010

One of those nasty things they like to slip into trade agreements

You may or may not have heard proposals for free trade with the European Union. On the surface this sounds like it could be okay; at least it would provide another market to lessen our dependence on the US. However, the devil is always in the details with these things. The Star article linked there points out some concerns, including the fact that provisions of Ontario's Green Energy Act that require domestic sourcing may run afoul of this agreement. However, the article fails to mention some of the more unsettling aspects:

Eliminate the Right to Save Seed?

The trade deal would almost entirely eliminate the rights of farmers to save, reuse and sell seed.

Plant varieties can be protected as intellectual property through Plant Breeders Rights as well as patents on genes. The trade deal would give rights holders an unprecedented degree of control over seeds and farming by committing Canada to adopt UPOV'91, the draconian 1991 version of The International Convention for the Protection of New Plant Varieties. The inclusion of UPOV'91 in the deal is completely unnecessary and is excessively harmful to Canadian farmers. Seed breeders would have the right to collect royalties on seed at any point in the food chain!

The draft of the trade deal also says that biotech corporations could seize the crops, equipment, and farms, and freeze the bank accounts of farmers who are deemed patent infringers, like farmers who find unwanted contamination in their fields.

End Supply Management?

The deal would commit Canada to reducing or eliminating agricultural subsidies and other government supports to farmers over time. Supply management systems that have allowed farmers in the dairy, poultry, and egg sectors to earn a decent living are under attack. The Canadian Wheat Board (a farmer controlled grain marketer) is also very likely under threat.

Source (h/t pogge). They've been trying to do this for some time, of course; we'd best be vigilant to ensure they don't succeed. Actually, I wouldn't be surprised if the EU is more leery of it than our own government, but we shouldn't count on that to scuttle the deal.